Internet

Nothing like waiting until the last minute to do something important. That is exactly what is happening on the Hill this week. The Internet Tax Freedom Act (ITFA) is set once again to expire at midnight on December 11, 2015.

There are some individuals who view intellectual property (IP), particularly movies, videos, and music as free for the taking; illegally posting and distributing content online without any regard to the impact such actions have on the creators and owners of the IP. This sad state of affairs was detailed last year in Citizens Against Government Waste's (CAGW) book Intellectual Property: Making It Personal.

With technology changing the way consumers listen and view music and videos, state and local governments are now looking toward taxation of digital goods and services to increase their tax revenues. Currently, 17 states require by statute that taxes be paid on digital goods and services, and another eight states plus the District of Columbia draw this authority from their departments of revenue regulations or case law.

In 2014, the Universal Service Fund (USF) collected approximately $8.5 billion to support telecommunications programs that include the Low Income support services, Lifeline and Link-Up programs; the High-Cost program; the Library and Schools program; and the Rural Health program. The funding for the USF is found in the charges on consumer’s communications bills as a hidden tax, known as the USF fee.

A May 11, 2015 report from the Brattle Group estimates the value of the 645.5 MHz of licensed spectrum currently in use at almost $500 billion. Beyond the monetary value of this spectrum are the services provided to consumers using licensed spectrum through their mobile devices. According to the report, economists have estimated that the total social benefits achieved from using licensed spectrum are at least 10 to 20 times the direct economic value of the spectrum itself.

On February 26, 2015, the three Democratic commissioners at the Federal Communications Commission (FCC) made a monumental decision to regulate the Internet under Title II of the Communications Act of 1934. In other words, they thought it was a good idea to apply an 80 year-old statute intended to regulate the monopoly Bell telephone system to the most compelling and competitive communications and commercial system ever created.

The President continued his preview of the State of the Union address on January 14, 2015 by announcing that among the top priorities for this year will be “removing barriers” for faster Internet speeds.

That is the central premise of Jay Walker’s keynote address, “Making Innovation Work for America and Americans,” at the first meeting of the IP Dealmakers Forum on November 6, 2014. The forum linked investors together with intellectual property (IP) information and opportunities.

Back in the 1980s, First Lady Nancy Reagan had a slogan to go with her anti-drug campaign, "Just Say No." Perhaps this same slogan should be used in the ongoing debate over the Federal Communications Commission's (FCC) efforts on net neutrality and Title II reclassification of the Internet.